Barnwell Industries Announces Planned Pension Plan Termination and Potential Surplus Reversion
Barnwell Industries said it plans to terminate its qualified defined benefit pension plan and use plan assets to settle obligations before any remaining surplus can revert to the company.
Barnwell Industries, Inc. (NYSE American:BRN) has announced a decision to terminate its qualified defined benefit pension plan and settle its related obligations. The company intends to purchase annuity contracts to secure participant benefits, while any surplus remaining after required payments and costs could revert to Barnwell.
As of September 30, 2026, the pension plan held approximately $12.8 million in assets. Barnwell estimated the plan’s termination liability at $7.3 million and reported a related supplemental executive retirement plan obligation of approximately $1.8 million.
On that basis, plan assets exceeded the estimated retirement obligations by approximately $3.7 million. Barnwell stressed that this amount is before administrative and transaction costs, applicable excise and other taxes, and any participant benefit increase adopted as part of the termination.
Plan assets will be used to satisfy all plan obligations, settle the supplemental executive retirement plan obligations, and pay administrative and transaction costs along with applicable excise and other taxes. All plan liabilities must be satisfied before any surplus assets can revert to Barnwell.
The company said it intends to secure participants’ benefits through annuity contracts. Any participant benefit increase, its effect on supplemental executive retirement plan obligations, and any associated tax reduction remain subject to review by Barnwell’s pension consulting firm and legal counsel, as well as approval by its Board of Directors.
Barnwell has retained an actuarial and pension consulting firm and separate ERISA legal counsel to advise on the plan termination and the potential reversion of surplus assets.
Barnwell currently anticipates a reversion in December 2026, but said it cannot assure the amount or timing of the reversion or the resulting benefit to shareholders. The company described its estimates as preliminary and said they may change materially.
The ultimate net cash proceeds and other value will depend on annuity pricing, interest rates, investment performance and plan asset values through settlement, final participant benefits, administrative and transaction costs, and applicable taxes.
Barnwell described the planned termination as part of an effort to simplify its balance sheet and reduce legacy liabilities. The company said a reversion, if it occurs, would add to its financial resources and reduce ongoing pension administration responsibilities.
Chief Financial Officer Philip Patman, Jr., who also serves on Barnwell’s Board of Directors, said the company’s first priority is securing promised participant benefits. He said any remaining surplus after taxes and administrative costs could become available for redeployment.
Patman also said Barnwell is evaluating strategic investments and acquisitions that could materially transform its scale and earnings profile. The company said it intends to remain focused on valuation, balance-sheet strength and long-term per-share value creation. These statements, as well as the expected reversion, are subject to the risks and uncertainties identified by Barnwell, including changes in interest rates, plan asset values and benefit obligations; insurer capacity and annuity pricing; pension termination requirements; tax treatment; and administrative and transaction costs.
Barnwell Industries has decided to terminate its qualified defined benefit pension plan but has not completed the process.
The plan held approximately $12.8 million in assets as of September 30, 2026, against an estimated termination liability of $7.3 million.
The related supplemental executive retirement plan obligation was approximately $1.8 million, with estimated excess assets of approximately $3.7 million before specified costs, taxes and potential benefit increases.
All plan liabilities, costs, taxes and related obligations must be addressed before any surplus can revert to Barnwell.
Barnwell currently anticipates a reversion in December 2026, but said its amount and timing are not assured and that preliminary estimates may change materially.
Barnwell Industries announced that it has decided to terminate its qualified defined benefit pension plan and satisfy all benefit obligations. The Company intends to purchase annuity contracts for participants, with any surplus remaining after the annuity purchase and other obligations reverting to Barnwell.
Barnwell Industries made the announcement on October 5, 2026. The estimates in the announcement are based on the plan's position as of September 30, 2026.
As of September 30, 2026, Barnwell Industries said the plan held approximately $12.8 million in assets. The estimated termination liability was $7.3 million, and the related supplemental executive retirement plan obligation was approximately $1.8 million.
Barnwell Industries must satisfy all plan obligations before any surplus can revert to the Company. Plan assets will also be used for related supplemental executive retirement plan obligations, administrative and transaction costs, and applicable excise and other taxes.
Barnwell Industries said plan assets exceed the estimated retirement obligations by approximately $3.7 million before administrative and transaction costs, applicable excise and other taxes, and any participant benefit increase adopted in connection with the termination. The estimates are preliminary and may change materially.
Barnwell Industries intends to secure participants' benefits by purchasing annuity contracts. Any participant benefit increase, its effect on supplemental executive retirement plan obligations and any associated tax reduction remain subject to review by the Company's pension consulting firm and legal counsel and approval by its Board of Directors.
Barnwell Industries has retained an actuarial and pension consulting firm and separate ERISA legal counsel. They will advise on the termination and reversion of surplus assets.
Barnwell Industries currently anticipates a reversion in December 2026. The Company said it cannot assure the amount or timing of the reversion or the resulting benefit to shareholders.
Barnwell Industries said the ultimate net cash proceeds and other value will depend on annuity pricing, interest rates, investment performance and plan asset values through settlement, final participant benefits, administrative and transaction costs, and applicable taxes. The Company also said all plan liabilities must be satisfied before surplus assets can revert to it.
Barnwell Industries described the termination as another step in simplifying its balance sheet and reducing legacy liabilities. Chief Financial Officer Philip Patman, Jr. said the Company's first priority is to secure the benefits promised to plan participants, after which any remaining surplus net of taxes and administrative costs could become available for redeployment.
Barnwell Industries said the expected reversion is expected to add to its financial resources, reduce ongoing pension administration responsibilities and enhance its ability to pursue strategic opportunities. Philip Patman, Jr. said the Company is evaluating strategic investments and acquisitions, while remaining focused on valuation, balance-sheet strength and long-term per-share value creation.
Philip Patman, Jr. said Barnwell Industries is evaluating strategic investments and acquisitions that could materially transform the Company's scale and earnings profile. He also said the Company intends to remain patient and focused on valuation, with no specific transaction announced in the release.
Barnwell Industries' shares trade on the NYSE American under the ticker symbol BRN.